Your monthly review, by Mike Lane and Zoe Andrews (Slaughter and May).
Development Securities: corporate residence
The case of Development Securities plc and others v HMRC [2019] UKUT 169 (TCC) concerned a scheme to enhance capital losses through certain transactions undertaken by three companies (the Jersey Cos) newly incorporated in Jersey as 100% subsidiaries of UK Plc. In order for the transactions to work as intended it was essential that the Jersey Cos were Jersey tax resident when they acquired certain assets at a price significantly in excess of their market value.
The First-tier Tribunal (FTT) concluded that the Jersey directors had abdicated their responsibility to UK Plc and that therefore the Jersey Cos were UK tax resident at the crucial time. The FTT focused on the uncommerciality of the acquisition undertaken in pursuance of a scheme propounded by UK Plc and the fact...
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Your monthly review, by Mike Lane and Zoe Andrews (Slaughter and May).
Development Securities: corporate residence
The case of Development Securities plc and others v HMRC [2019] UKUT 169 (TCC) concerned a scheme to enhance capital losses through certain transactions undertaken by three companies (the Jersey Cos) newly incorporated in Jersey as 100% subsidiaries of UK Plc. In order for the transactions to work as intended it was essential that the Jersey Cos were Jersey tax resident when they acquired certain assets at a price significantly in excess of their market value.
The First-tier Tribunal (FTT) concluded that the Jersey directors had abdicated their responsibility to UK Plc and that therefore the Jersey Cos were UK tax resident at the crucial time. The FTT focused on the uncommerciality of the acquisition undertaken in pursuance of a scheme propounded by UK Plc and the fact...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
